Government to lease Komenda Sugar factory to Indian firm for 15 years to revive operations
The Minister for Trade and Industry, K.T. Hammond, has announced that the Ghanaian government plans to lease the Komenda Sugar Factory to West African Agro Limited, an Indian-based company, for a renewable term of 15 to 20 years.
This move is intended to rejuvenate the factory’s operations, which have been struggling since its inauguration.
During a visit to the factory in the Komenda Edina Eguafo-Abirem Municipality of the Central Region, Minister Hammond emphasized that this initiative is part of broader efforts to boost the local sugar industry, reduce sugar imports, and create jobs in response to the high demand for sugar.
The Komenda Sugar Factory, a $35 million project funded by the Indian EXIM Bank, was inaugurated by former President John Mahama in May 2016 to produce sugar locally and generate employment for over 7,000 people along the value chain. However, operations soon faltered due to various challenges.
The government previously signed a partnership agreement in November 2019 with Park Agrotech Ghana Limited, another Ghanaian-Indian company, to inject $28 million into the factory’s revival. Despite these efforts, the factory’s operations remain stalled.
During the visit, K.T Hammond also criticized former President Mahama’s handling of the factory, questioning the planning and sustainability of its operations. He dismissed Mahama’s commitment to reviving the factory if elected in the upcoming 2024 election.
